Finland Tax Rates
Finland operates a dual income tax system where earned income is progressively taxed at combined rates reaching approximately 56.5% (national + municipal tax), while capital income is taxed at a flat 30-34%. Finland features a 20% corporate tax rate, a standard 25.5% VAT (increased from 24% in 2024), and a comprehensive social security system. Finland does not levy wealth or inheritance-free transfers for close relatives below thresholds.
Top Income Tax Rate
56.5%
Corporate Tax Rate
20%
VAT / Sales Tax
25.5%
Capital Gains Tax
34%
Detailed Tax Information
Income Tax Brackets
Finland taxes earned income at both the national and municipal level. National income tax follows progressive brackets from 6% to 31.25%. Municipal income tax is levied at flat rates set by each municipality, averaging approximately 20.5% (ranging from 17.5% to 23.5%). Church tax of 1-2% applies to members of the Evangelical Lutheran or Orthodox churches. The combined top marginal rate on earned income is approximately 56.5%. Capital income is taxed separately at 30% (34% above €30,000).
| Income Range | Tax Rate |
|---|---|
| €0 – €21K | 0% |
| €21K – €31K | 6% |
| €31K – €50K | 17.5% |
| €50K – €88K | 21.5% |
| €88K+ | 31.3% |
Corporate Tax
Finland levies corporate income tax at a flat rate of 20%, which is competitive within the EU. Finland applies the participation exemption for capital gains on the disposal of shares in qualifying subsidiaries (minimum 10% holding for at least one year). Dividends from EU/EEA subsidiaries are also exempt. Finland does not levy a separate local corporate tax.
Standard Rate
20%
Capital Gains Tax
Capital gains are taxed as capital income at 30% (up to €30,000) and 34% (above €30,000). This applies to gains from shares, real estate (other than primary residence), and other assets. Losses from shares can offset capital gains and up to €1,500 can offset other capital income. For non-share assets, losses only offset gains from the same asset category.
Rate
34%
VAT / Sales Tax
Finland applies a standard VAT (arvonlisävero or ALV) rate of 25.5%, with reduced rates of 13.5% (reduced from 14% in January 2026) and 10%. Finland's VAT system follows EU directives. The Åland Islands have a special VAT status as a territory outside the EU VAT area.
Standard Rate
25.5%
Cryptocurrency Tax
Cryptocurrency gains in Finland are taxed as capital income at 30% (up to €30,000) and 34% (above €30,000). Each disposal (sale, exchange, or use for payment) is a taxable event, including crypto-to-crypto exchanges. The acquisition cost can be the actual cost or a deemed cost of 20% of the selling price (40% if held for 10+ years), whichever is more favorable. Mining income is taxed as earned income at progressive rates.
Tax Treaties
Finland has approximately 78 double taxation treaties in force. The Nordic Tax Convention provides special provisions among Nordic countries. Finland's treaties generally follow the OECD Model. Finland participates actively in OECD BEPS initiatives and has signed the Multilateral Instrument (MLI).
Treaty Network
78
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Finland
See how much you could save by moving here from your current country.
$-1,975
Tax in United States
$24K
24.4% effective
Tax in Finland
$26K
26.3% effective
Additional Cost
8.1%
more tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
